We’re Here to Help!

No matter the reason – growing family, marriage, new job or retirement – it’s exciting when you decide now is the time for a new home. For buyers, it can be an intimating process. How do you start? Who can you contact? How much can you afford? Fortunately, Ruhl&Ruhl provides trusted real estate advisors and resources to help buyers with every step of the process.

Where to Start?

When you start the process of buying a home, you should first consider your needs and wants, your timeline, and current market conditions

Step 1: What do you want?

Consider where you want to live, what type of house do you want, what features are absolutely necessary to you. Take some time to gather your housing needs and put your 'wish list' on paper.

Here are some questions you should discuss with your family and then share with your Realtor:

If you could live anywhere, where would it be?

What style of home do you prefer?

When you purchased your current home, what was the process you used to find that home?

Is there anything you would have changed in this purchase?

Have you been in homes that you loved? What did you love about them?

Do you have a monthly payment in mind?

Anything that you need to resolve before buying?

Do you have a home to sell before you buy?

How are you going to pay? Will anyone else be helping you with the purchase or downpayment? Have you already spoken with a loan officer and been pre-approved for a home loan?

What are your priorities in a home? Have you and anyone else involved in the purchase created your wish lists? Have you compared those?

Do you want to move twice (if you’re selling)? If not, this is something to consider with timing.

Step 2: What is your timeline?

Next, you need to consider your specific timeline. The buying process takes anywhere from 9-22 months. In addition, it takes 45 days on average to close on your home purchase after an accepted offer. That means that it will be very important to understand when you would like to be in your new home and then work backwards.

Step 3: What are the current market conditions?

Lastly, you will want to consider the area's housing market condition. Ask your Realtor how many months of inventory there is in the specific area or neighborhood. Months of inventory is a good way to measure supply and demand.

Months of inventory reflects an estimate of the amount of time it would take to sell all of the current listings in a given area if no new listings became available.

Less than three months of inventory: Seller's Market
Homes may be higher priced or sell faster because there is not enough supply to keep up with the demand. This can create a competitive market for that specific area causing homes to have multiple offers within the first day, or even offers over the asking price.

Three to six months of inventory: Neutral Market
The supply is keeping up with the demand.

More than six months of inventory: Buyer's Market
Homes are selling more slowly or there are lots of homes to choose from. In a buyer's market, buyers have more negotiating power than sellers because the supply of listings exceeds the current demand for housing.

Feeling overwhelmed already? Don’t be!
Choose a Realtor
to help you start the process. A Ruhl&Ruhl sales associate will sit down with you and your family and walk you through the entire buyer process to help identify your top needs and priorities and to be your advocate throughout the process.

Preparing to Buy

Now that you have considered your needs and wants, as well as your timeline and the current market conditions, you will want to start identifying where you would like live and how you will purchase a home.

Step one: Decide your price range. Get preapproved.

There are three key factors that you will need to consider when determining how much home you can afford. These are:

Your ability to qualify for a mortgage

The down payment

The closing costs associated with your transaction

You will first want to sit down with a mortgage loan officer to share your timeline and some of your expectations of the home buying process. Based on your income, debt and savings, they will be able to provide a pre-approval letter for the total loan amount you qualify for, and discuss different loan products that may work for you.. It's important to find a mortgage loan officer that is knowledgeable and has access to lots of different loan products. To contact a loan officer or to get pre-approved for a mortgage online, visit
www.RuhlMortgage.com
.

Here are the benefits of a mortgage pre-approval:

Remember, you shouldn’t just go to one lender. You should always get a second opinion.

Step two: Investigate the other costs involved.

You will also discuss with your loan officer what you plan to use as your down payment. Most loans today require a minimum down payment of between 3.5% and 5.0% depending on the type and terms of the loan.

If you are able to come up with 20-25% down payment, you may be eligible to take advantage of special fast-track programs and possibly eliminate mortgage insurance.

Closing costs are the fees charged by lenders and attorneys in order to close your home. These fees can vary on your team members and price of the home. These are paid at the time that you close on your mortgage. Most of the time, the homebuyer pays the closing costs, but there are times that the seller may pay a portion of these costs if negotiated.

Closing costs may include:

A fee for running your credit report

A loan origination fee

Attorney's fees

Discount points, which are fees you pay in exchange for a lower interest rate

Appraisal fee

Title insurance

Escrow deposit

Recording fee

Underwriting fee

Closing costs in our markets generally cost between $2,000-$5,000. Lenders are required by law to give you a good faith estimate (GFE) of what the closing costs on your home will be within three days of when you apply for a loan.

Step three: Location, location, location!

Once you have your pre-approval letter and understand what you can afford, it's time to get looking! You first should identify the area or neighborhoods in which you would like to live.

While you’re looking at neighborhoods, drive through different areas of town to see them in person. You need to determine that the neighborhood in which you choose to look for a home matches your lifestyle and personality. Talk to people who live there. Drive through the entire area at different times of the day. Here are some tips about what to look for:

Does the neighborhood have access to major thoroughfares, highways, and shopping?

Is it a loud neighborhood or a quiet one? Listen for noise created by commerce, roads, railways, public areas, schools, etc.

Smell the air for adjacent commerce or agriculture.

Check with local civic, police, fire, and school officials to find information about the area.

Choosing the Right Agent & Team

Why have a team?

Behind every successful manager is a great team. In the game of real estate, you are the manager and you need to ensure you have the best team to help you reach your goals. By picking the right team, you will have a team of experts in your corner and looking out for your interests throughout the process.

What does a Realtor do for me?

Realtors make the process of purchasing a home efficient, effective and with as few issues as possible. But if and when an issue does arise, it's their job to offer solutions. In fact, this is what they are specially trained to do. You will always make the decisions, but your Realtor and the rest of the team will manage the process.

Your Realtor will also help you navigate the process of buying a home. In fact, they have a fiduciary duty, or a legal responsibility, to act solely in your interest. Here are some ways that your Realtor will advocate for you:

Handling Negotiations:
You will have an expert negotiator on your side

As this is the largest purchase that most people will ever make, it's common to have fears – fears of overpaying or missing out or fear that that something will go wrong, fear that this is 'the' house.

It's the job of your first team member, your Realtor, to help you find the right home and, at the same time, make sure they are addressing your fears. They are specially trained to support you through this process and will be your guide from start to finish.

They are your counselor, your advocate, and are the person looking out for you and your interests. You always stay the manager, but they will be the lead team member to get you home.

What Should I Look For in a Realtor?

When hiring a Realtor, decide whom you believe in your mind is the most qualified to get the job done. A Realtor should be chosen for expertise in guiding clients through the home buying maze of paperwork, negotiations, and “what-if” scenarios. You want to look for someone who

Starting Your Search

Step 1: Start looking!

Ninety percent of people begin their property search online. Start your search on RuhlHomes.com by choosing an area and then selecting search criteria that meets your needs.

You want to look at the wish list that you created earlier and start selecting homes that may be of interested to you. Ruhlhomes.com can help, because our site has all homes for sale on the market and has information about our local areas.

Also, you can set up an email alert, called a Personal Shopper, which will email you new listings that meet your specific criteria as soon as they hit the market.

Step 2: Narrowing Down the List.

Once you have this list, it's time to sit down with your Realtor to review your list of needs and wants, as well as the list of properties you are interested in. Through a process of elimination, your Realtor will carefully narrow down the list to your top homes.

Some of these top homes you will look at online, some you will drive by, and some you will decide you want to make an appointment and tour the home. It's important to remember that you are in control of the decisions.

As you go through this process, the goal is to find your top three. This will be a rolling list because it will change over time.

Take your time and know that this process will take time. Remember, there is no perfect home, but there is a perfect home for you. Be patient and make sure to stay in tuned with the information that your Realtor is providing, as well as what is coming through your Personal Shopper reports.

Step 3: Local Tips from the Experts

Drive your new (or prospective) neighborhood at different times; figure out what’s it like.

When you are searching and get closer to extending an offer, don’t move, don’t quit your job, don’t buy a new car.

If you have to resell soon, don’t buy an unusual house.

Even if the quality of the school district doesn’t matter to you now, remember it might someday to another buyer.

Brand new homes may be lower in maintenance costs but can be higher in out of pocket expenses.

There are no perfect homes. Be ready to make compromises or concessions. Know what’s most important to you and give on things that aren’t.

Location, Location, Location. Some things don’t change.

Supply and demand is a critical issue. Be ready to move quickly when your find what you want.

Pay attention to floor plans. Changing layouts of rooms can be costly.

Get pre-approved for a mortgage prior to making an offer.

Be an educated buyer. Learn as much as you can about the market before you buy.

Always make your offer contingent on a home inspection – it’s money well spent.

Compare mortgages – artificially low rates could have hidden costs. When interest rates are low, go for a fixed mortgage.

Redoing kitchens and baths can be expensive, check these out carefully.

Imagine the home vacant. Do not be swayed by decorating – the furnishings will go with the seller.

Vacant homes appear bigger than they are. It may be a good idea to measure to make sure your furnishings will fit.

Buy the best home you can afford in the best neighborhood you can afford. You are almost always better off with the least expensive home in the area rather than the most expensive.

Pay attention to the original listing date of the properties you look at: sellers tend to be more flexible the longer the home has been on the market.

Be honest and open with your agent. He or she works for you and can best help you if they have a good understanding of your needs.

You’ll know the right home for you when you see it and it will have very little to do with logic – don’t ask how that works, it just does.

We've found our home. Now what?

Making the Offer

Once you have identified a property you could see yourself living in, your Realtor will do a market analysis showing you similar, recently sold properties in the same area to help you get a feel for the value.

Your Realtor will take you step-by-step through the
purchase contract
and what each section means. The purchase contract is the most important document in the sale of real estate. The contract sets the terms and conditions that the seller and buyer agree to. Be sure to review the seller disclosure of property information carefully before writing your offer.

A well-written contract, which is available through your Ruhl&Ruhl Realtor, is designed to protect both the buyer and seller and will save you money if prepared and negotiated properly.

There are a few main Items that can be negotiated in a real estate purchase agreement:

Price – what the buyers agree to pay for the home

Terms – closing date, what inspections are being requested and who will pay for them, if a home warranty will be provided and who will pay for it

Possession – when the buyers will take possession of the home

Contingencies – protect the buyer in case you cannot perform or choose not to perform on a promise to buy a home

Bill of Sale – what appliances or fixtures are included in the purchase

Your Realtor will work through all of these with you. Again, you will make the decisions; your Realtor will help educate you on your options and make recommendations.

Negotiations

Once the offer is submitted to a seller, they may accept the offer, reject it, or present a counter offer. It is important not to get emotionally attached to the property during the negotiating process so you do not over pay. The better job you do of controlling your emotions, the more likely you are to control the transaction.

When all the applicable paperwork has been signed and notarized, the keys are handed over to you. You'll want to make sure you have turned on your utilities and forwarded your mail. Title to the property is conveyed to you through a recorded deed. After the closing, the mortgage servicer collects your monthly payments and handles your escrow account.

Congratulations! You now own a house!

If you need help making your new house your new home, check out a list of our partners or contact Customer Service at
866.441.1776
with any questions.

First, the
inspections
that you requested on the purchase agreement will be ordered by your Realtor. You will receive a very detailed report from any inspections and these will be reviewed and discussed with your Realtor.

You will then have the option to request items to be repaired. This will be the second round of negotiations.

Once you have come to terms, closing will be scheduled, as will a final walk through. During the final walk through, you'll be able to ensure that all fixtures are still in the house, and that all repairs were completed. Your Realtor will continue to communicate with you throughout this process.

Before closing, you will want to make sure you purchase homeowners insurance. The Nelson Brothers Agency, our insurance partner, may be a good place to start. It's important to shop around so you can make sure you are getting the best deal.

You will also want to schedule movers and start preparing for your move. Click here for a moving checklist to help.

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